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Using Straight-Line Depreciation for Financial Reporting Purposes and MACRS for Tax

Question 45

Multiple Choice

Using straight-line depreciation for financial reporting purposes and MACRS for tax purposes in the first year of an asset's life creates a:


A) Future deductible amount.
B) Permanent difference not requiring inter-period tax allocation.
C) Deferred tax asset.
D) Deferred tax liability.

Correct Answer:

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